Covered interest rate parity (CIP) have collapsed since 2008 and potential drivers or explanatory factors have been identified for CIP deviations. Using VARs with functional shocks and high-frequency event-study methods, I study the impact of the Fed monetary policy surprise, which is an important shock to global dollar supply, on the CIP deviations of various currencies. This paper also examines the relationship between bond yield curves and CIP deviations in non-US economies when faced with Fe